Comparing Mplx (NYSE:MPLX) and Granite Ridge Resources (NYSE:GRNT)
by Danessa Lincoln · The Markets DailyMplx (NYSE:MPLX – Get Free Report) and Granite Ridge Resources (NYSE:GRNT – Get Free Report) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Valuation and Earnings
This table compares Mplx and Granite Ridge Resources”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mplx | $13.00 billion | 4.39 | $4.91 billion | $4.65 | 12.10 |
| Granite Ridge Resources | $450.31 million | 1.28 | $24.35 million | ($0.21) | -20.88 |
Mplx has higher revenue and earnings than Granite Ridge Resources. Granite Ridge Resources is trading at a lower price-to-earnings ratio than Mplx, indicating that it is currently the more affordable of the two stocks.
Dividends
Mplx pays an annual dividend of $4.31 per share and has a dividend yield of 7.7%. Granite Ridge Resources pays an annual dividend of $0.44 per share and has a dividend yield of 10.0%. Mplx pays out 92.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Granite Ridge Resources pays out -209.5% of its earnings in the form of a dividend. Mplx has increased its dividend for 9 consecutive years. Granite Ridge Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
Mplx has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, Granite Ridge Resources has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500.
Institutional & Insider Ownership
24.2% of Mplx shares are owned by institutional investors. Comparatively, 31.6% of Granite Ridge Resources shares are owned by institutional investors. 8.6% of Granite Ridge Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Mplx and Granite Ridge Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mplx | 35.75% | 32.83% | 10.98% |
| Granite Ridge Resources | -5.56% | 4.67% | 2.33% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Mplx and Granite Ridge Resources, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mplx | 0 | 7 | 6 | 1 | 2.57 |
| Granite Ridge Resources | 1 | 1 | 2 | 1 | 2.60 |
Mplx presently has a consensus price target of $63.80, suggesting a potential upside of 13.35%. Granite Ridge Resources has a consensus price target of $10.00, suggesting a potential upside of 128.05%. Given Granite Ridge Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Granite Ridge Resources is more favorable than Mplx.
Summary
Mplx beats Granite Ridge Resources on 11 of the 17 factors compared between the two stocks.
About Mplx
MPLX LP engages in the operation of midstream energy infrastructure and logistics assets, and distribution fuels services. It operates through the Crude Oil and Products Logistics and Natural Gas and NGL Services segments. The Crude Oil and Products Logistics segment transports, stores, distributes, and markets crude oil, asphalt, refined petroleum products, and water. The Natural Gas and NGL Services segment gathers, processes, and transports natural gas, and gathers, transports, fractionates, stores, and markets natural gas liquids (NGLs). The company was founded on March 27, 2012 and is headquartered in Findlay, OH.
About Granite Ridge Resources
Granite Ridge Resources, Inc. operates as a non-operated oil and gas exploration and production company. It owns a portfolio of wells and acreage across the Permian and other unconventional basins in the United States. Granite Ridge Resources, Inc. is based in Dallas, Texas.